Medicare for Higher Income

2023 Medicare Costs + Coverage Updates

The Centers for Medicare & Medicaid Services (CMS) have released the Medicare costs and coverage information for 2022.

PART A - COSTS

PART A (Hospital) Premium

Most people don't pay a monthly premium for Part A. If you do buy Part A, you'll pay up to $499 each month if you paid medicare taxes for less than 30 quarters. If you paid Medicare taxes for 30-39 quarters, the standard Part A premium is $274.

PART A Deductible + Coinsurance

  • $1,600 deductible for each benefit period
  • Days 1-60: $0 coinsurance for each benefit period
  • Days 61-90: $400 coinsurance per day for each benefit period
  • Days 91 and beyond: $800 coinsurance per each "lifetime reserve day" after day 90 for each benefit period (up to 60 days over your lifetime)
  • Beyond lifetime reserve days: all costs

PART B - COSTS

PART B (Medical) Premium

Those enrolled in Part B will pay at least the standard $164.90/mo premium (based on income).  Higher income earners will pay a Part B IRMAA (Income Related Monthly Adjustment Amount) in addition to the $164.90/mo standard premium.

PART B Deductible + Coinsurance

  • $226 deductible per year
  • After your deductible is met, you typically pay 20% of the Medicare-approved amount for most doctor services, outpatient therapy, and durable medical equipment (DME)


Part B Income-Related Adjustments

If your MAGI (Modified Adjusted Gross Income*) in 2021 was…

File Individual Tax Return

File Joint Tax Return

File Married + Separate Tax Return

What You Pay to Medicare (per person) Each Month in 2023 (Part B premium + IRMMA)

$97,000 or less
$194,000 or less
$97,000 or less
$164.90
$97,001 to $123,000$194,001 to $246,000
Not applicable

$230.80

(164.90 + 65.90)

$123,001 to $153,000$246,001 to $306,000Not applicable

$329.70

(164.90 + 164.80)

$153,001 to $183,000$306,001 to $366,000Not applicable

$428.60

(164.90 + 263.70)

$183,001 to $499,999

$366,001 to $749,999$97,001 to $402,999

$527.50

(164.90 + 362.60)

$500,000 +$750,000 +$403,000 +

$560.50

(164.90 + 395.60)


PART D - COSTS

Higher income earners who are enrolled in Part D Prescription Drug coverage also pay a Part D IRMAA in addition to the monthly insurance premium for a Part D prescription drug plan or Medicare Advantage plan that includes Part D coverage (see table below).

Part D Income Related Adjustments

If your MAGI (Modified Adjusted Gross Income*) in 2021 was…

File Individual Tax Return

File Joint Tax Return

File Married + Separate Tax Return

What You Pay To Medicare (per person) Each Month in 2023

$97,000 or less$194,000 or less$97,000 or lessyour plan premium
$97,001 to $123,000$194,001 to $246,000Not applicable$12.20 + your plan premium
$123,001 to $153,000$246,001 to $306,000Not applicable$31.50 + your plan premium
$153,001 to $183,000$306,001 to $366,000Not applicable$50.70 + your plan premium
$183,001 to $499,999$366,001 to $749,999$97,001 to  $402,999$71.00 + your plan premium
$500,000 +$750,000 +$403,000 +$76.40 + your plan premium
Money Saving Tip:

Money Saving Tip:

If a retiree's current income is lower than the most-recent tax return, they may be eligible to appeal a Medicare premium surcharge — but only if the income drop is the due to specific life-changing events such as death of a spouse, divorce, marriage or retirement. If that is the case, clients should immediately respond to the premium surcharge notice, known as an income-related monthly adjustment amount (IRMAA) letter they receive in the fall, and follow the instructions on how to appeal the surcharge.